Renzo Protocol Controversy: ezETH Lost Peg, Airdrop Sparks Heated Debates

Thursday, 25 April 2024, 06:10

Renzo's ezETH faced a depeg from Ether amid a controversial native token airdrop, leading to liquidations on leveraged protocols. Despite a momentary price dip, ezETH has since recovered. The incident highlighted risks faced by all liquid restaking tokens (LRTs) and sparked concerns within the community.
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Renzo Protocol Controversy: ezETH Lost Peg, Airdrop Sparks Heated Debates

EzETH Depeg and Liquidations

Renzos's ezETH suffered a depeg from Ether following a controversial airdrop, resulting in liquidations across leveraged protocols.

Raise of Community Concerns

The incident raised concerns among the community regarding risks associated with depegging and airdrops.

  • Large-scale ezETH sell-off occurred following Renzo Protocol's airdrop.
  • Increased liquidations in leveraged protocols such as Gearbox and Morpho Labs.

Tommy, from Crypto.com Capital, highlighted the importance of awareness regarding depeg risks.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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